Market Basket: Frozen yogurt battle heats up

Walk into a frozen yogurt shop after dinner on a warm evening and youare likely to find children, parents and grandparents standing at theself-serve machines.

They survey the options.

Then customers sample the flavors on tap, from cake batter to thinmint, root beer float to berry sorbet.

You may choose one flavor or combine a couple; you might want just adollop or a large heaping cup.

Then the fun starts.

Crushed cookies, candies, chocolates, cereals, fresh fruits, nuts,sauces and sprinkles are among the dozens of choices that tempt andtantalize your taste buds at the toppings bar -- the place whereone-of-a-kind creations are made.

"The experience is fun for kids and for the adults," says AdrienneTranberg, of South Bend, on Facebook. "Creating something new at everyvisit is what is appealing to my son and myself. The environment isfun and does give me a sense of community. Everyone is happy whenmaking a yogurt sundae."

Frozen yogurt shops burst onto the scene during the 1980s, when TCBYserved as the industry giant among health-conscious consumers.

The national trend never completely disappeared, but it waned. Thatis, until about four years ago, when the number of fro-yo shopsdramatically grew, especially on the West Coast. Some cities sawfrozen dessert shops popping up on every street corner likecoffeehouses.

Last year, two locally owned businesses opened within weeks of oneanother in South Bend and Mishawaka, introducing local diners to thepopular concept and product that's generally considered healthier thanice cream and frozen custard.

A 4-ounce serving usually has between 80 to 120 calories, withouttoppings. That is between two to four Weight Watchers points.

An average cup contains between 8 to 10 ounces, and costs $3.50 to $4-- or more depending on the toppings.

"Yummy," says Pat Morgan, of South Bend, on Facebook. "It's theyogurt, the choices, and the fun of making your own and enjoyingfamily and friends."

Let's Spoon opened its first shop near Notre Dame in April 2011. Theowners added a second location at Erskine Village on South Bend'ssouth side, and it has became kosher certified by a local rabbi.

"I feel we're still continuing to grow, especially being near NotreDame with students coming in and out," says Holly Lederer,co-owner. "We couldn't have chosen a better spot."

In Mishawaka, Urban Swirl debuted its first yogurt bar in June 2011 atHeritage Square. Not only is Urban Swirl planning a Goshen location inJuly, but the owners are expanding to West Lafayette, Ind., and St.Petersburg, Fla.

"I think there are people who come specifically for the yogurt, andothers come for the social aspect of the experience," says co-ownerNancy Hildebrandt.

"It's a place to hang out, and somewhere to always see someone youknow," she says about Urban Swirl. "Even in recessionary times, peoplewill allow themselves a small treat. I think the self-serve part ofthis concept helped bring the popularity of frozen yogurt back."

And the number of area shops is expected to more than double duringthe next few months.

On Friday, a Sweet Frog local franchisee will open the nationalcompany's first area location at Erskine Commons in South Bend.

"The ability to put outside seating was a key element we were lookingfor," says local owner John Dillon about the 30 outside seats. "Youcan sit outside, enjoy your yogurt and watch the sunset."

Plans are already in the works to double the size of the deck to addseating for 40 more this fall, Dillon says.

In July, Urban Swirl is opening a new Goshen shop, where locally ownedHoney's Frozen Yogurt recently opened its doors.

Other stores and franchises could be coming, considering there is noshortage of customers for these new local businesses.

National trends are also still on the uptick, says New York-basedmarket research firm NPD Group.

Frozen yogurt servings at restaurants and other food service outlets,such as frozen yogurt shops, for the year ending March 2012, were up 9percent compared to the same period a year ago.

Total servings for the period were 130.8 million, up from 120.2million for the year ending March 2011.

Local owners will be watching as newcomers enter a market that could,like others across the country, over time become saturated.

"I think there are so many opportunities out there, so many placesthat are untapped where you could be the first in a new market,"Hildebrandt says. "But our customer base is very loyal to us, and wethink they'll continue to be loyal even after the national chainsstart coming in."

Lederer, of Let's Spoon, agrees that oversaturation could happen in time.

"You divide business too much and at some point there is nothing leftto divide," Lederer says.

"We think it's possible where it gets to the point where there are toomany in our area. Whether you're a doughnut shop or a bagel shop, oreven McDonald's, there could be too many," Lederer adds. "But we havea lot of very loyal customers, families and 'spooners' and we're stillcontinuing to grow."

Here is your guide to a few frozen yogurt shops mentioned in this column.

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Heidi Prescott's column runs in the South Bend Tribune on Wednesdays, Fridays and Sundays. Whenshe's not shopping, contact her at hprescott@sbtinfo.com or574-235-6070. You can also talk retail at Facebook.com/thebasket andat Twitter.com/marketbasket.